When a Union Successfully Raises the Wages of Its Members

question 9

Multiple Choice

When a union successfully raises the wages of its members, it will also

• A) increase total productivity, which must rise in proportion to the wage rate.
• B) encourage employers to find a substitute for the union labor.
• C) raise the wages of nonunion workers.
• D) increase the share of income allocated to labor as opposed to capital.

---

Definitions:

Normal Probability Plot

A graphical tool used to determine if a dataset approximates a normal distribution, plotting observed values against theoretically expected values.

Sum of Squares for Error SSE

A measure used in statistical analysis to quantify the discrepancy between the observed and expected values, indicating the error in a regression model.

Standard Error of Estimate

A measure of the accuracy of predictions made with a regression line, representing the average distance that the observed values fall from the regression line.

Poor Fit

Indicates that a statistical model does not adequately capture the observed data or relationships among variables.